The share price of India Cements Ltd rallied over 6 percent on Tuesday after ace investor Radhakisan Damani raised stakes in the cement maker.
Radhakishan Damani, the owner of supermarket chain D-Mart, has been piling on the shares of India Cements for almost a year now. His individual stake in the company stood over 11 percent in December 2020 against over 10 percent in September 2020. His brother and billionaire Gopikishan Damani has also increased his holding from 8.26 to 8.46 percent.
As of September 2020, Damani family owned a combined stake of 20.4 percent in the cement maker. According to exchange data, it has now increased to 21.14 percent.
In response to the news, the stock rallied over 6 percent to Rs 172 per share today.
CNBC-TV18 had previously reported that Damani reached out to N Srinivasan, the Vice Chairman and Managing Director of India Cements, to explore a takeover. According to exchange numbers, the promoter and promoter group hold 28.42 percent stake in the company. However, Damani has not made any official comment on his stake so far.
The company had reported a sharp rise in its Q2 profits at Rs 0.71 crore as compared to Rs 0.9 crore YoY, despite fall in cement volumes. As per CLSA, cement stocks will show the highest YoY growth in profit before tax on the backs of strong demand after easing in lockdown restrictions. This rise is despite a high growth base from the same quarter in the previous year.
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